Ethereum, the largest altcoin in terms of market value, stands as the most resilient platform for smart contracts. Its DeFi applications have attracted a massive user base, allowing for the tokenization of real-world assets from banks. However, despite the anticipation of soaring ETH prices in the coming months, the expected outcome does not always come to fruition.
The Month of May and Ethereum
As we approach the end of April, we find ourselves entering the crucial month of May for Ethereum. The final decisions regarding the ETH ETF applications submitted by VanEck and Ark&21Shares are scheduled for May 23. As the month draws to a close, the SEC will reveal its verdict on these ETFs, as well as the fate of other pending applications.
In contrast to the situation with spot BTC ETFs in January, we may witness the rejection of applications that have not yet reached their decision date. The majority is almost certain of this outcome. Bloomberg experts have revised their early-year predictions in a negative manner. Many believe that the Ethereum Foundation has already made the technical decision to reject these applications, thereby nullifying the most significant price catalyst for Ether this year.
Looking at the price of ETH, we can see that the possibility of rejection has already been factored in, as ETH is finding buyers at $3,260. However, if the SEC were to surprise everyone and make a shocking announcement, ETH could rapidly climb above $4,000. Considering the SEC’s actions during the BTC ETF approval process, such as fake announcements from the official X account and Gensler’s hesitant approval statements, is such a scenario likely? It appears highly unlikely.
The SEC and the Cryptocurrency Nightmare
The SEC’s implications that Ethereum’s new model could lead to centralized control and the legal actions it has taken form the basis for the expectation of ETF rejection. The Wells Notice sent to Consensys, the largest company in the Ethereum ecosystem, along with the notice sent to Uniswap and the request for documents regarding the relationship between the Ethereum Foundation and crypto companies, indicate that the SEC has already initiated its attack.
According to a spokesperson from Consensys, the SEC’s desire to categorize Ethereum as a security would mean the downfall of these innovative advancements, allowing the rest of the world to surpass us. “This is something that we cannot tolerate. It is not something that the rest of the industry or anyone should tolerate because this issue goes beyond just crypto and blockchain. It is an attack on the technology itself,” says the spokesperson.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
